Our leverage tokens rebalance once a day at 5 PM CET in order to maintain the correct amount of daily exposure to Bitcoin or other cryptoassets, as we show in the “How do we maintain leverage exposure with leveraged tokens?” section.
While leverage tokens automatically rebalance at 5 PM CET every single day, they will also rebalance if the daily returns of their underlying cryptoasset changes by a specific amount. The threshold amount is the following for tokens with different levels of leverage:
- 3X Leverage Tokens (i.e. BTC3XLONG, BTC3XSHORT, ETH3XLONG, ETH3XSHORT): 15%
For example, if Bitcoin were to go up by 15% on a single day at 11 AM CET then BTC3XLONG would rebalance at that point and then also rebalance at 5 PM CET. This would only happen in cases where the market moves against the stated exposure — therefore as a stop loss.